I got a Home Depot preapproval for $1,250 in the mail yesterday and an offer for a 10% discount on my initial purchase and I am agonizing over the question of if I should accept it. I applied for a mortgage last month and received my approval letter with the stipulation that I pay my California state tax lien. No problem. The house isn't even built yet and won't be until mid-July. The lender pulled my credit from all three CRAs three times before I got the approval letter. Last week I applied for the Umbrella Bank checking account which was a soft inquiry and was approved for their platinum visa. So there will be no inquiry for them to see, just the new tradeline. I figure I can justify that one by just saying I was switching banks (and I just might switch away from TD Waterhouse). But if I accept the Home Depot card there will be a dated inquiry and a new tradeline. I think it would be easy to explain to the lender why I wanted a Home Depot account and not really out of line. There is a bunch of stuff I will need at Home Depot once I have my new home (appliances, flooring, etc.) and I would really like to have an account. I wouldn't USE it until after the mortgage closes. So I have a few questions for those who know: Would it hurt me to accept this offer? If I were to apply after the close of my loan (after the TON of inquiries that the lender will pull) and without the benefit of the preapproval, would I likely still be approved? Are the limits offered as good when applying at the store, or am I likely to get a higher limit with the preapproval? What is there usual initial limit? If I actually go in the store in July, buy $3,000 or $4,000 of merchandise and then apply am I more likely to get approved for the higher limit? On a side note, Monogram is a funny outfit. My first Monogram account was Walmart back in April. I've used the card a few times and paid it off each month but when I call them to increase the credit limit they always either say no or give me a $25 or $50 increase. My total credit line is under $400. Then they send me a preapproval for a $4,000 limit card for an electronics store. I opened that one and have been paying regularly on a 0% offer. Now they send me a $1,250 preapproval for Home Depot. They obviously like me, but will they give me an increase on my Walmart account? No.
From what I have read, DO NOT GET ANY NEW TRADELINES OR INQUIRIES UNTIL AFTER YOU CLOSE ON THE LOAN. (I will try to find the thread)
Yeah, that's my gut feeling as well. I guess I just got this offer at a bad time. I'm inclined to let it go and just apply later this year.
Once you have closed, you may be able to explain the situation to Home Depot. They may honor the 10% discount at a later date. Hopefully they will make an exception. Besides, they should have heard the story before
With all of the expenses involved in setting up a brand new house, the 10% off and the six months no interest and no payments (did I forget to mention that?) looks pretty darned attractive. Maybe I'll PF them after the loan closes and see what I can do.
Apply now would propably hurt your score in more ways than just one. Of course you would take a hit for the inquiry, and if approved you may take another drop in your score due to a new account added to your file. In any event, Home Depot always offers 10% off for in Store instant credit. And if you do a search on Home Depot, you will find a thread from this past summer documenting how more linient Home Depot is during the summer months with their credit approvals. Of course this is not to say that they will continue with this practice. I did however managed to get approved for $ 1,000 and my credit is not the best. Hope this info helps.
I would hold off until you have keys (good advice, George). Is the closing after the expiration date of the pre-approval? Even if it's after the expiration date, see if they will extend it (at the store ). I opened the account but didn't make the 1st 10% off purchase until about 10 days after the coupon expired (stooooopid), but the store manager overrode it no problem. I can say that the Depot pre-approvals did not generate an inquiry for myself (1998) or my partner (last month). ***BUT*** They do report the new tradeline almost immediately (I saw it pop up on CE in 5 days). I was able to raise my $1250 after 6 months ... and every 6 months thereafter - it's now something like $15k. My partner was given a $750 pre-approval, and 1 month later (after charging $700 for the 6-month 0% deal) was given $9500 (talk about an increase!). Good luck- mj
Usually the lender pulls a credit report the day your house closes for funding, also you have to sign a statement that nothing has changed that you haven't reported to them. I would wait and get the home depot after you get the house. LIke someone else said home depot always has this offer. Cindy
leave everything alone right now, until you close your loan. you will be sorry if you don't..........
